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McDonald’s (MCD) has spent years offering new coffee products to compete with Dunkin’ Donuts (DNKN) and Starbuck’s (SBUX).

But the McCafe is starting to hurt business at McDonald’s, Howard Penney, managing director at Hedgeye Risk Management, tells Yahoo! Finance.

“They went too far on the beverage initiative beginning in 2009 and really hurt the core business,” Penney tells Yahoo!. “They’re really losing customers at lunch and the stores are a little too inefficient because of the distractions they’ve put into the stores.”